By | Jan. 18, 2014 at 12:01am
THE Catholic Bishops Conference of the Philippines said Friday the recent increase in Manila Electric Company’s distribution charge was unjust and should not be allowed.
The Supreme Court has ordered Meralco to temporarily freeze its rate increase of P4.15 per kilowatt hour for December while it hears the petitions for and against it, while the Energy Regulatory Commission has granted the company’s offer to stagger the charge following the consumers’ opposition to it.
But Manila Auxiliary Bishop Broderick Pabillo said if Meralco was finally allowed to charge its new rate, many Filipinos especially the poor would suffer from it.
“If even the middle class finds such an increase oppressive, how much more so our society’s less fortunate? It will only make the poor poorer,” said Pabillo, the head of the CBCP’s Permanent Committee on Public Affairs.
But Pabillo said Meralco should not take all the blame because the entire government system itself needed fixing.
He said there was a need for the government to promote the common good.
“Our government must do everything in its capacity to ensure that the welfare of every Filipino is always upheld,” Pabilo said.
“Ironically, we are using the most expensive electricity in Asia.”
Pabillo made his statement even as three lawmakers said they had high hopes the Supreme Court would come out with a decision on Meralco’s rate increase favoring the Filipino people.
Bayan Muna party-list Reps. Carlos Zarate and Neri Colmenares said Manila Electric Co. “dictated” the increase and manipulated the market price of electricity particularly in November and December 2013.
Gabriela party-list Rep. Luz Ilagan said the fourth petition filed Thursday with the Supreme Court against Meralco’s rate increase of P4.15 per kilowatt hour “is a clear indicator of “the urgency, validity and gravity of this issue.”
“It should be a clear signal to the [Supreme Court] for an immediate and pro-people decision,” Ilagan said.
“It should also warn Malacanang of the increasing loss of trust of the people in... PNoy’s [Aquino’s] officials to address the basic concerns of the masses. That many issues brought before the [high court] shows that citizens are questioning the way the country is being run.”
Ilagan made her statement after former congressman Augusto Syjuco Jr. filed a petition for certiorari and prohibition urging the high court to declare as illegal and unconstitutional the order of the Energy Regulatory Commission granting Meralco’s staggered rate adjustment.
Syjuco asked the high court to make its 60-day temporary restraining order on the power issue permanent.
Citing documents from the wholesale electricity spot market, Colmenares said Therma Mobile entered 62-peso bids in the spot market nine times in November and 59 times in December even if the contracted price between Meralco and Thermo Mobile was only P8.65 per kilowatt hour to jack up the price of electricity. However, Therma Mobile declared that it was Meralco that ordered it to do so.
“Aboitiz Power president and CEO Erramon Aboitiz, who owns Therma Mobile, while admitting that Therma Mobile did make the very high bids, passed the buck to Meralco by saying that “Under TMO’s capacity-based contract, Meralco has full control of the use of the 100 megawatts from TMO, including pricing and volume offers to the WESM,” Colmenares said.
“100 megawatts of its capacity was only utilized by Meralco starting November 12, 2013. The balance of 130 megawatts will be available by mid 2014 once the connection line is available. TMO is a mere implementor of Meralco’s price and volume offers to the spot market or WESM.
“We will raise before the Supreme Court that it was Meralco with Therma Mobile that was manipulating the spot market price of electricity at P62 and then passed it on to consumers resulting in the P4.15 per kilowatt hour power rate hike.”
Zarate said the spot market for electricity should be abolished and the power generators and distributors should be regulated.
“This will prevent collusion and the cartelization of the power industry,” Zarate said.
“This will also prevent the industry from being profit-driven, which is detrimental to consumers.” With Maricel V. Cruz source
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